In truth, Anarchy is the lack of government due to either a revolution or the collapse of the previous government due to discontented citizens. While no government is in existence, no taxes are collected, no science research is conducted, and no progress is put into either City Improvements or Wonders of the World. If you can, try and stay away from this form of government. And if you're going to be switching government types often, attempt to get the Statue of Liberty wonder.
Under this form of government, you have absolute control over the people in your empire. While this gives you greater control over your empire, the production capabilities within cities will be limited. Furthermore, each unit produced above the city size will cost one Shield per turn, and Settler Units eat one unit of food per turn. In terms of keeping the citizens in each city happy, three Military Units within a city represent martial law, resulting in up to three citizens being kept content. When ruling under despotism, the farther cities are away from your capital city, the higher corruption and waste will be. Finally, the Tax, Science, and Luxuries rates that you set cannot go higher than 60 percent, and the production capabilities of terrain squares are reduced. In the early stages of a simulation, operating under this form of government is actually somewhat beneficial, but you'll soon have to change to another type of government to grow into a productive empire.
I usually just skip over this form of government straight to Republic. But if your going to be having a lot of troops crossing oceans or you're going to be at war alot, this is the government of my choice. Under a Monarchy, you rule by divine right over your empire. This form of government gives less control to the ruler than despotism but makes the population happier and more productive. But the drawbacks to Monarchy are the same as despotism, although much less severe. The thing most people like is placing cities under Martial Law with up to 3 military units within the city to make 3 citizens content. Another great thing is it will allow up to 3 military units to leave the city radius without any financial burden. The Tax, Science, and Luxuries rates cannot go above 70 percent.
This is a new form of government that's available in Civ II. This form of government is based on a set of beliefs that usually derive from religion, and both the population and the rulers are totally dedicated to their beliefs. They are willing to do just about anything to uphold them. Fanatics are a new type of Military Unit that can only be created under this form of government, which don't penalize you financially period. All other units don't penalize you until they out number 10. Under this form of government, no citizens are ever unhappy. This means that your individual cities will never enter into a state of civil disorder and that corruption is kept at zero. The Tax, Science, and Luxuries rates cannot be set above 80 percent under a Fundamentalist government. Also, the City Improvements and Wonders of the World that are dedicated to making citizens content or happy will now generate money, because the population is happy by default. The drawback to this form of government is that all science production is cut in half, so your empire's progress toward developing new advances will be limited. Finally, if an enemy spy or diplomat (terrorist) is captured, the penalty for them will be lighter than the death penalty, which is standard under other forms of government.
This isn't socialism like in old mother Russia, this is the government Russia was striving towards. All goods and production are commonly owned under this form of government; however, you (the leader) still retain all decision-making powers. There is no corruption under a Communist government, and all Spy Units produced are immediately given Veteran status. The Tax, Science, and Luxuries rates cannot be set above 80 percent. When you place up to three military units within a city, under this form of government, two unhappy citizens are made content per unit. If you're going to be making war and don't want your taxes taken up by corruption or your science taken up by fanatics, this is the government for you.
This is usually my government of choice until I get to Democracy. This form of government represents a political system where elected representatives exercise power over the people who are separated up into numerous city states. In the game each city controlled by your empire represents a single state. Even though you can't maintain martial law in a city under this government, trade is boosted by personal and economic freedoms to the point that every space that is already producing trade produces 1 extra trade arrow. Because of this trade increase, you can easily afford to raise luxuries to at least 20% to keep people content. When forming trade routes under this form of government, you're even given extra trade bonuses. Another plus is that corruption is very low, compared to other forms. But the bad side to having all this prosperity in your Empire is that everything you do has to be OKed by the senate. And the senate will almost always rule for peace with other civilizations to the point of going behind your back to sign cease fires and peace treaties. Another problem is that you must bear the full cost of fielding an army. Every unit costs 1 Shield, every settler unit costs 2 food of support, and troops that are outside the city radius make 1 citizen discontent. Also, every Stealth bomber, missile, or helicopter, regardless of location, causes 1 citizen to become discontent in it's home city. These also cause 1 discontent citizen in the city in which they are based. The maximum rate possible for Taxes/Science/Luxuries is 80%.
This is the ultimate form of government in Civilizations II. This form of government offers its citizens the ultimate in political and economic freedom. Like the Republic, every square already producing trade produces 1 extra trade arrow. Also, your cities and troops cannot be bribed due to extremely high patriotism. Trade bonuses are even higher under this form of government. Corruption and waist is non-existent due to everyone trying to get ahead in the world. Again, like under Republic, you have to bear full cost of your military. A military unit costs 1 Shield, a settler costs 2 food, and every military unit outside the city radius makes 1 citizen discontent. Every Stealth bomber, missile, or helicopter also creates a discontent citizen each. Your senate will feel free to alter your foreign policies, just like under The Republic. I usually get to this form of government just to build up my empire and its knowledge advances, then I change to Fundamentalism and invade. One very good way to know if you're ready for Democracy is if you are at 20% Luxuries and still need 2 entertainers, then you're not yet ready for it and need to switch to a more controlled form of government. Also, Democracy is very fragile. If one of your cities is in civil unrest for more than 1 turn, then your government will fall leaving you under Anarchy. Losing precious time, you probably needed to upgrade your cities.
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